After today’s sudden market scare, most people have no intention of becoming bullish on Bitcoin again. However, the current sentiment across all exchanges seems to tell a different story. The current long-short ratio favors bullish Bitcoin momentum in the foreseeable future.
The Long-Short Ratio Is Promising
It is not evident to see a bullish long-short ratio for Bitcoin when the markets remain somewhat bearish. Even today, there was an unexpected market dip, pushing the price below $30,000 rather quickly. Although that dip has been rebought, for the most part, nothing prevents this trend from repeating itself. As they have been in recent weeks, the markets are incredibly volatile and show no signs of immediate recovery.
Despite this situation, the current long-short ratio is shifting somewhat. It is very different from one platform to the next, yet the overall trend is rather intriguing. On some platforms, there is an outspoken bullish sentiment, whereas others show far more bearish momentum.
As things stand, Kraken and ByBit have the majority of the bullish momentum right now. For Kraken, the percentage sits at over 73%, which might not represent the current market conditions. There is a lot of uncertainty, and it seems unlikely that will change shortly. On ByBit, the optimism is slightly more constrained, although over 56% of market positions are longs.
Interestingly, the same applies to FTX, one of the more prominent trading platforms to rise up in recent months. The majority of users expect a bullish trend for the world’s leading cryptocurrency, even though a further decline seems more likely at this stage. A very interesting turn of events after the recent developments, although these figures will always be subject to change.
BitMEX and Deribit Favor Bearish Momentum
What makes the long-short ratio so intriguing is how it vastly differs from one exchange to the next. On BitMEX, widely considered the biggest derivatives platform in the cryptocurrency industry today, less than four in ten people are openly bullish on Bitcoin. That is very peculiar, although it may be more representative of what traders expect today.
Deribit shows very similar bearish momentum, which is not entirely surprising either. The top derivatives platforms always tend to favor shorting Bitcoin over going long, for some reason. It is not entirely abnormal to see this long-short sentiment sentiment at this time, however, as there is nothing to be overly excited about either.
For Bitcoin, the current market outlook remains uncertain. Anything remains possible for this currency, although there should be no realistic expectations for upward momentum. Remaining above $30,000 will prove difficult enough already, as traders intend to push the price down much further.